Business taxes fall. This raises __________, which raises __________ and the __________ curve shifts rightward
A) consumption; aggregate demand (AD); AD
B) investment; government purchases; AD
C) investment; aggregate demand (AD); AD
D) net exports; aggregate demand (AD); AD
E) none of the above
C
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The four somewhat overlapping theories of how the entrepreneur is able to earn a profit are: (1) ___________; (2) ___________; (3) ___________; and (4) ____________.
Fill in the blank(s) with the appropriate word(s).
Suppose an economy with two goods (candy and desk) and two identical agents that is in a competitive equilibrium. The marginal cost of a piece of candy is given by MCc = 4Qc and the marginal cost of a desk is MCd = 2 + Qd. The current production level of candy (Qc) is 4 pieces and of desks (Qd) is 30. What can be said about the marginal utility of candy (MUc) and the Marginal utility of desks
(MUd)? A) 3MUc = MUd B) MUc = 0.5MUd C) MUc = MUd = 4 D) MUc = 2MUd
Given the following table for a competitive firm which is maximizing profits, if the marginal revenue product of the last worker hired is $150 and three workers are employed per day, the price of a unit of output must be:
A. $1,000
B. $100
C. $20
D. $10
For central bankers to alter the real interest rate by changing the nominal interest rate, which of the following must be true?
A. The expected rate of inflation has to change. B. The change in the expected rate of inflation must equal the change in the nominal interest rate. C. The rate of inflation has to remain constant. D. Inflation expectations are quite stable.